ADR-0025: KazTelecom Y1 dual-option pitch — Cash Sponsor OR Cash + Telecom Services trade, both equal

• Status: Accepted
• Deciders: Jean
• Date: 2026-05-02
• Supersedes: Recalibration §9 ₸20-35M Y1 single-ask framing for KazTelecom (2026-05-01-realistic-financial-recalibration.md)
• Related SOT slice: Layer 2 → Partnerships → Kazakhtelecom (new entry v1.3 LOCKED)

Context

Recalibration 2026-05-01 set KazTelecom Y1 ask at ₸20-35M, dialed down from Take’s original ₸50-70M. Jean directed during continuation session 2026-05-02:

1. >₸35M Y1 for general sponsor status is the right ask if cash-only structure
2. Alternative attractive structure: lower cash component + free telecom services from KazTelecom (especially e-SIM connectivity for AI-pin fleet)
3. Both options should be presented as equal alternatives in CP — KazTelecom selects fit. No single recommendation lead.

KazTelecom (КаzахТелеком, ticker KEGOC + KZTC) is the dominant KZ telecom operator: 2024 revenue ₸744B ($1.55B, +8.2% YoY), EBITDA ₸309B ($645M, +3.7%). TV+ kids segment is structurally weak (only 70K paid subscribers + 2M app downloads per Telecompaper). KazTelecom has clear motivation: shore up TV+ retention, capture IPTV growth window (+32% market growth per apprupt 2026), differentiate family-plan offering vs Beeline KZ + Activ.

The dual-option structure aligns with two different KazTelecom internal stakeholder paths:

• Marketing/sponsorship budget owners prefer cash-only (Option A) — straightforward sponsorship line item
• Strategy/innovation budget owners prefer in-kind services (Option B) — locks-in strategic innovation positioning, lower budget impact

By pitching both equal, OIYNUP lets KazTelecom self-select which internal stakeholder champions the deal — increases likelihood of close.

Decision

KazTelecom Y1 = dual-option pitch, both equal value, KazTelecom chooses fit.

Option A — Cash General Sponsor (₸40-50M Y1)

• Cash: ₸40-50M Y1 (above ₸35M floor)
• Multi-channel value-stack:
  • TV+ cartoon premiere window + ongoing distribution (S1-S5+)
  • KazTelecom home page promotional placement
  • IPTV cross-promo (banner + interstitial during kids programming)
  • Family-plan bundle (KazTel mobile family + OIYNUP premium subscription, telco gets attribution)
• Term: 24 months KPI-gated
• KPIs: TV+ kids segment retention uplift; IPTV churn reduction in family accounts; cross-sell from KazTel mobile to family-plan; OIYNUP install attribution from TV+ premiere window

Option B — Cash + Telecom Services Trade (₸15-20M cash + ₸25-40M in-kind = ₸40-60M equivalent)

• Cash: ₸15-20M Y1
• In-kind from KazTelecom (~₸25-40M equivalent value):
  • Free e-SIM connectivity for AI-pin fleet Y1-Y3 (LTE-M data plans, kids-tier traffic shaping, ~$15-25/unit/year saved on cellular pin variants — material for AI-pin unit economics)
  • Free TV+ premiere window (cartoon distribution)
  • Free IPTV bandwidth allocation for in-game streaming features
  • Free family-plan bundling slot (zero cross-promo cost)
• Strategic upside: locks KazTelecom into Y2 AI-pin launch as connectivity partner, lowers OIYNUP COGS on cellular pin variants ₸2,500-4,000/unit margin uplift, positions KazTelecom as innovation leader (mirroring Beeline KZ’s recent kids-product investments)
• Term: 24 months KPI-gated
• KPIs: AI-pin pilot 200-500 units shipped Y1 with KazTel e-SIM; TV+ kids segment uplift same as Option A; KazTel positioning as “exclusive connectivity partner” in AI-pin marketing

Framing in CP v1

KazTelecom selects based on internal preference: Option A if standard sponsorship structure preferred (single budget line, marketing/sponsorship procurement path); Option B if strategic e-SIM partnership + reduced cash outlay preferred (innovation/strategy procurement path, locks competitive positioning).

Both options sized at equivalent total value (~₸40-60M Y1 commitment), preserving OIYNUP-side revenue parity.

What we explicitly are NOT doing

• No equity offer to KazTelecom Y1 (corp-VC arms typically take minority equity at Series A maturity, not pre-MVP)
• No revenue-share split structure (telco corp-VC standard 30-40% rev-share applies at distribution-partner Y2-Y3 deals, not sponsorship Y1)
• No exclusivity to KazTelecom in OIYNUP’s wider partnership lineup — KazTelecom gets Y1 telecom-channel exclusivity, but Danone, BilimLand, etc. partnerships proceed in parallel
• No RU/CIS expansion commitment Y1 (geography Y1 = KZ-only per ADR-0020)

Consequences

• Plus: Two-option structure increases close probability — KazTelecom internal stakeholders self-select preferred path.
• Plus: Option B unlocks strategic moat — KazTel as exclusive AI-pin connectivity partner Y2-Y3, reduces OIYNUP COGS, raises competitive switching cost vs Beeline / Activ entering kids-tech later.
• Plus: ₸40-50M Y1 cash (Option A) or ₸15-20M cash + ₸25-40M in-kind (Option B) both materially fund OIYNUP Y1 deficit.
• Plus: TV+ premiere window (in both options) cements cartoon distribution + provides free top-funnel installs.
• Minus: Option B’s lower Y1 cash (₸15-20M vs ₸40-50M) tightens Y1 cash flow if KazTel selects this path. Mitigation: SAFE T1 + T2 + Astana Hub + Danone ₸35M still cover Y1 deficit; KazTel cash difference funded from buffer.
• Minus: Negotiation complexity higher with two options — KazTel may try to cherry-pick (e.g. Option B’s e-SIM + Option A’s higher cash). Mitigation: bundled packages enforce mutual exclusivity in CP language.
• Minus: TV+ kids segment is structurally weak (only 70K paid subscribers) — KazTel may push back on size of value commitment vs subscriber base. Mitigation: lead with IPTV growth + family-plan cross-sell + AI-pin innovation positioning, not TV+ standalone.
• Следующие шаги: Write KazTelecom CP v1 in Block C with both options framed equal; brief KazTelecom contact (TBD — Astana Hub formal channel OR direct TV+ B2B); brief AI-pin hardware engineer Q3 2026 hire on e-SIM integration spec; align Y1 AI-pin pilot 300 units to use KazTel e-SIM if Option B selected.

Alternatives considered

• ₸20-35M Y1 single-ask (recalibration framing): rejected per Jean direction — too low for KazTelecom scale (₸744B revenue 2024, ₸309B EBITDA), leaves strategic value on table.
• ₸50-70M Y1 single-ask (Take’s original recommendation): rejected — too high for pre-MVP without traction proof, KazTel procurement will haircut without visible KPIs.
• Cash-only Option A as recommended (no Option B alternative): rejected per Jean direction — Option B unlocks strategic e-SIM partnership that materially benefits OIYNUP unit economics Y2-Y3, deserves equal billing.
• Equity stake to KazTelecom in exchange for telecom services Y1: rejected — corp-VC equity at pre-MVP is mispriced (KazTel would demand large %, dilutes founders). Defer to Series A maturity Y3+ if KazTel still strategic.
• Bundle subscription only (KazTel sells OIYNUP premium as upsell, OIYNUP keeps 70%): rejected — distribution-partner structure, not sponsorship; appropriate Y2-Y3 after MVP traction proves OIYNUP can drive ARPU.
• Pure rev-share 30-40% to KazTel: rejected — telco rev-share standards apply at distribution-partner deals, not sponsorship Y1.

Related

• SOT: SOURCE_OF_TRUTH.md §Layer 2 Partnerships → Kazakhtelecom (v1.3 LOCKED entry)
• ADRs: ADR-0014 (AI-pin canon — Y2 cellular pin variant connectivity benefits), ADR-0017 (equipment), ADR-0019 (realistic financial baseline), ADR-0020 (geography Y1 KZ)
• Specs: docs/superpowers/specs/2026-05-02-canon-corrections-jean-direction.md §C3
• Files: partnerships/kazakhtelecom/ (new folder, CP v1 to be written in Block C)
• External: Telecompaper KazTelecom TV+ subscribers; KazTelecom 2024 financials (₸744B revenue); apprupt 2026 KZ pay-TV market +32% IPTV/OTT growth